Comet Powder Company Has Purchased a Piece of Equipment Costing

Multiple Choice

Comet Powder Company has purchased a piece of equipment costing $100,000. It is expected to generate a ten-year stream of benefits amounting to $16,273 per year. Determine the rate of return Comet expects to earn from this equipment.

A) 16.3%
B) 62.7%
C) 10%
D) 20%